July 20, 2022 | Article
Despite relieving financial burdens temporarily, layoffs affect organizations negatively in many ways, some of which can be profound and lasting. Research has shown that layoffs generally don’t increase financial performance or stock price of the company beyond one to two quarters. Instead, they often result in negative outcomes such as future voluntary turnover; loss of skills, learning, productivity, and innovation; lowered employee morale; and brand reputational risks.
So, what are the alternatives to layoffs? The Conference Board suggests organizations facing financial challenges during economic downturns look to layoffs only as a last resort. Instead, companies should consider these 11 alternative strategies before downsizing:
For more insights on how to deploy these strategies under adverse economic circumstances see the following article written April 9, 2020, Human Capital Management during COVID-19: Finding Innovative Alternatives to Layoffs, containing tactics and examples that are still relevant today
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